Off-plan mortgages

Off-plan financing is different to financing on a ready property. Banks will only ever finance a maximum of 50% of the purchase price, and they will only do this once you have paid 50% already.

If you have purchased an under construction property directly from a developer, you can organise the financing once the construction and payments have reached certain percentages. It is also possible to arrange a mortgage as part of the purchase if you are buying an under construction property from a seller who originally purchased it from the developer.

Off-plan financing can only be done with specific developers. In general, the banks that do off-plan financing will finance the larger government-backed developers, as well as other 'Tier 1' developers that are widely known and regarded in the market.

The following table outlines which developers banks can finance, and how much construction should be completed before the banks are willing to lend.

Most banks only offer variable interest rates when financing off-plan. One bank offers fixed rates starting at 4.69% (rate as of October 2026).

For the banks offering variable rate mortgages, the rate you will pay consists of EIBOR (the Emirates Interbank Offered Rate) plus a bank profit margin which varies per bank. The rate you will pay will normally change every three months.

When banks finance under construction properties, the bank pays the developer only when the payment is due. This amount depends on the developer's payment plan.

The good thing about this is you will not start paying interest on the full 50% loan amount from Day 1. Instead, you will only pay interest on the amount that has been released by the bank to the developer.

Unfortunately, off-plan financing is generally only available to UAE residents with income inside the country. If your income is overseas, most banks are unwilling to give finance on an under construction property. For the one bank that does it, the minimum income requirements are high for both salaried and self-employed individuals.